38.2-5108 - Notice and registration requirements of purchasing groups.
§ 38.2-5108. Notice and registration requirements of purchasing groups.
A. A purchasing group which intends to do business in this Commonwealth shallfurnish notice to the Commission, on forms prescribed by the Commission,which shall:
1. Identify the state in which the group is domiciled;
2. Identify all other states in which the group intends to do business;
3. Specify the lines and classifications of liability insurance which thepurchasing group intends to purchase;
4. Identify the insurance company from which the group intends to purchaseits insurance, the domicile of such company, and the business address of suchcompany;
5. Specify the method by which, and the person(s), if any, through whominsurance will be offered to its purchasing groups located in thisCommonwealth;
6. Identify the principal place of business of the group including thebusiness address of the group; and
7. Provide such other information as may be required by the Commission toverify that the purchasing group is qualified under the definition set forthin this chapter.
B. A purchasing group shall, within ten days, notify the Commission of anychanges in any items set forth in subsection A of this section.
C. The purchasing group shall register with and designate the clerk of theCommission as its agent solely for the purpose of receiving service of legaldocuments or process, except that such requirements shall not apply in thecase of a purchasing group:
1. Which (i) was domiciled before April 1, 1986, and (ii) is domiciled on andafter October 27, 1986, in any state of the United States;
2. Which (i) before October 27, 1986, purchased insurance from an insurancecarrier licensed in any state and (ii) since October 27, 1986, purchases itsinsurance from an insurance carrier licensed in any state;
3. Which was a purchasing group under the requirements of the ProductLiability Risk Retention Act of 1981 before October 27, 1986; and
4. Which does not purchase insurance that was not authorized for purposes ofan exemption under that Act, as in effect before October 27, 1986.
D. Each purchasing group that is required to give notice pursuant tosubsection A of this section shall also furnish such information as may berequired by the Commission to (i) verify that the entity qualifies as apurchasing group; (ii) determine where the purchasing group is located; and(iii) determine appropriate tax treatment.
E. Any purchasing group which was doing business in Virginia prior to theenactment of this subsection shall, within thirty days after July 1, 1992,furnish notice to the Commission pursuant to the provisions of subsection Aof this section and furnish such information as may be required pursuant tosubsections B and C of this section.
(1987, c. 585; 1992, c. 588.)